Brussels, 11/12/2014 (Agence Europe) - The European Commission has extended until 15 June 2015 the transitional period during which banks exposed to the central counterparties (CCP) of third countries with legislation not equivalent to the relevant European law will not be subjected to additional capital requirements.
“Since the process of authorisation and recognition (of the equivalency of the European and third-country central counterparties) takes time, and in order to ensure a level playing field, the Community Capital Requirements Regulation provides for an extension period, during which no additional requirements will be applied. This transitional period was set to expire on 15 December 2014. As the authorisation and recognition processes will not be fully completed by that date, the European Commission has decided to extend the phase until 15 June 2015”, the Commission states in a press release dated Thursday 11 December.
This extra time will be used to seek an agreement with the United States on the basis of a roadmap jointly agreed by the American authorities and the Commission negotiating on behalf of the EU. At the end of October, the Commission recognised the legislation of third countries (Australia, Hong Kong, Japan and Singapore) governing the activities of the CCPs to be equivalent to the law in force in the EU (EUROPE 11188). (MB)